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Fulton County Receives Historically Low Interest Rate for Tax Anticipation Notes | Print |

On June 6, 2012, Fulton County Government issued $120 million of tax anticipation notes. Bank of America Merrill Lynch was the winning bidder with a net interest cost of 0.161277%. The County will save approximately $399 thousand in interest payments compared to the 2012 budgeted amount.

The interest rate was the lowest the County has ever received. Fulton County Finance officials are not aware of any jurisdiction in Georgia receiving a lower rate. The low interest was due, in part, to Fulton County’s designation with the best possible short term credit ratings by S&P and Fitch. Fulton County was rated as SP-1+ and F1+, respectively, from the two agencies.

The tax anticipation notes represent 32% of expected 2012 property tax receipts and will mature on December 30, 2012. The majority of revenue in most local governments comes from property taxes, which are due in the fall for Fulton County property owners. Local governments with a calendar year budget typically make use of tax anticipation notes to manage cash flow during the year.

The County’s overall credit rating is AA, which is also excellent. The strong short-term and long-term ratings are indicators of the County’s long history of strong financial management.

County Manager Zachary Williams said, "In these difficult economic times, Fulton County‚Äôs strong record of financial management is more important than ever. Our strong finances combined with historically low interest rates allow us offer the best possible value for taxpayers.‚ÄĚ

 
 

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